Hi Guy’s
[grad]
For interests sake i’ve posted some property related questions on the forum for the benefit of all; feel free to answer these no matter what your experience level.
What has been your best move?
What was your worst mistake?
Key advice for the novice?
Best Property or Investing related book you’ve read?
Your Top 5 Tips?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorWhat has been your best move?
Marrying somebody like my wife who also finds Property interesting and enjoys looking at properties and discussing potential IP’s and Homes, luckily for me she has a great grasp on maths and is an EXCEL guru.
What was your worst mistake?
Selling one of My Investment Properties i *knew* i should’ve held
Key advice for the novice?
Do something..now
Best Property or Investing related book you’ve read?
Jan Sommers Books
Noel Whittakers Books
Steve McKnights Books
Dolf DeROOS Books
However my current favourite would be Peter Spanns How you can build a $10M property portfolio in 10 years
Your Top 5 Tips?
1-Buy well Add value Manage intensely
2-Use Debt Wisely
3-Listen to others advice-then sort out what is useful and discard the rest.
4-Dont buy your own home first
5- Build your Team (accountant/Mortgage Broker etc)
6- [biggrin]Plan, Plan, Plan
REDWING“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorWhy do you suggest not to buy your own home first?
Ta
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Redwing
BEST MOVE –
My best move was buying the property I live in. We purchased 12 years ago for $185,000 and with reno it is now worth close of $1M. This allowed us to purchase additional properties.WORST/DISASTEROUS MOVE
Not doing my homework/research adequately and purchasing an IP in the wrong location.KEY ADVICE
I believe research is the key and understanding particular areas on a micro level is important. If you do not understand the data ask people who do.Read books and learn about various strategies and go with what works for you/your situation. Dont fear changing strategies to continue investing, and always make sure that whatever you do the figures stack up.
BEST READ –
My all time favourite book – Jan Somers.
She inspired me to get started.
I have read many others, but her books simply stand out for me.I believe it’s cheaper to rent than buy and when starting out you are better served staying at home with your parents and buying an Investment Property of which the interest and associated costs are Tax deductible.
The government and the tenant assists you in purchasing this property; with you *topping* up the loan regularly with your savings, this should see you build up equity quicker than purchasing a PPOR.
Ideally and maybe we should rent each others houses or at least a comparable one for the benefit of both parties involved?
Your Thoughts?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorMY WORST MOVE
Sold negaitve geared proeprty to buy ‘cashflow positive’ properties. I would have made far much more by holding on.Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Best – the deal we settled on yesterday – 2 acres in Perth for less than land value and +CF to boot.
Worst – our first residential IP which was bought for the good area and the “feel” of the suburb…wanted to get CBA shares instead at $ 7-00 each instead, but went down the house route and lost massively in comparison because of it.
Advice – talk to older more experienced investors who have a keen memory for figures.
Book – Noel Whittaker for starting me off and Jan Somers for continuing it on. However, I’ve found the books too general in their advice to be really useful. Chatting with elfderly gentlemen about nitty gritty specifics has been far more valuable than any book available. They also get straight into the meat without going down the “This is how you set up a budget” dross for beginners.
Tips Only buy IP’s that have large land content and are self funding. Also, get close to your finance source – they are crucial to your success – do not allow brokers to get in the way of your relationship – in the end you’ll definitely get better deals than going via the brokers.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Agree with you on chatting with the elderly DAZZLING, especially “elderly investors”, no sense getting older if you dont get wiser.
I was talking with someone the other day who bought in CBA *big* time when they first listed, hindsight is usualy crystal clear isn’t it.
Great replies guy’s keep it coming, it’s always interesting.
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi Guys
Best Move – Investing in property from the age of 17 even though I didn’t really know what I was doing and made a lot of mistakes.
Worst Mistake – Not understanding the huge difference location makes to capital growth.
Key advice – Do your research, work out the worst case then go ahead and do something.
Best book – Noel Whittaker’s first book “Making Money Made Simple” got me started.
Tips
1. Formulate a strategy, if you don’t know what your strategy is then you don’t have one.
2. Read, ask questions and seek those who have done or are doing what you are looking to do.
3. Try not to follow the herd. Invest with the head and not the heart.
4. You will screw up occasionally. Learn and move on.
5. Remember to live as well.Clive
Clive
Don’t want to nit pick but can i ask you where you investing in property in Australia at the age of 17.
it is just 18 is the minimum age who can legally purchase a property unless it is purchased in Trust.
Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.Richard Taylor | Australia's leading private lender
Thanks for asking the questions, redwing- you’re a very positive guy
What has been your best move?
Buying property! Knoqwing my spending habits (I have never been thifty), I would have nothing by now if I hadn’t bought that first cheap property.
What was your worst mistake?
Not buying more property when the market was flat as a pancake before the boom. Being a snob about where I bought property- it meant that missed out on heaps of opportunities.
Key advice for the novice?
Research, research- read every piece of property-related material you can get your hands on- pretty much everything is free on the net.
Best Property or Investing related book you’ve read?
This forum- seriously. But the book that got me started was Jan Somers’ book. I also enjoyed Anita Bell’s book, as me and my property partner at the time were also paying off our properties in 3 years (it’s dated now though post-boom)
Your Top 5 Tips?
* Don’t bother being told what to do by people who still think from a bygone era- study trends for the future- the future of X-gens and Y-gen high income earners is not on a 1/4 acre block an hour out of sydney (paying 500k for a block in Schofields that is being opened up by thre state govt is not worth it imo).
* Keep your job unless the income you generate from property is equal to your pay now. Otherwise you might end up in poverty and out of the workforce for too long and unable to get back in.
* Keep your integrity in every part of purchasing and selling property- noone loves a scammer.
* Don’t burn your bridges with those who assist in property- RE agents, accountants, banks, PM’s etc. Maintaining good relationships with professionals is king. Your property manager is not your slave, and your tenant is valuable- treat them with respect.
* Property is fun! Become independent- don’t rely on others to teach you- teach yourself by reading and watching what others do- but don’t follow slavishly anything you’re told. Learn to fish yourself, instead of expecting the fish to come and climb onto your plate.
kay henry
Richard
Bought block in Mandurah WA for $17,000 cash when 17 in father’s name (his name, my dough)and transferred title when 18 and built first house for $55,000. My first home loan.
Clive
My worst mistake was falling for the idea “wouldn’t it be fun the do up an old Queenslander”. I bought an old house that was literally falling off it stumps,facing west and located on the busiest road in Queensland. If there was a mistake to be made in real estate I made it in that house. This turned out to be one of the best things I did. Mistakes are how we learn and are part of life. I was able to confine my real estate blunders to that one house, I learnt and moved on. The best thing I did was marry my wife. We move evenly yoked together in life as well as in our investing life.
*bump*
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorWow Redwing…..can’t believe more than a year has passed by since we all contributed to this thread….what a ride over the past 12 months here in Perth, wouldn’t you agree ??
Agreed Dazzling..spent some time in the vaults of the crypt (archives) this morning..some interesting stuff there ;o)
I’ve heard of the BRAIN DRAIN..now it seems Perth is getting a BRAIN RAIN according to the papers
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorBest Move – Getting Started early and young
Worst Mistakes – neglecting management
Books – Peter spanns first and second – recognises a balanced approach and welcomes other assest classes as part of an overall stragey
I Buy Property http://www.cashflowproperties.co.nz
G’day Kay Henry,
You say, being a snob about where to buy property, while missing other opportunities. I would rather buy one property in Manly on the beach than one hundred properties else where.
Quality before quanity every time.Worst mistate. Buying a serviced hotel apt when first starting out.
6.5% net return for two years, then down to average returns.
Sold at a loss just to escape. The place was way over priced.Best investment . A dual occ. at North Curl Curl complete with coastal views. Cost seven hundred and eighty thousand dollars.
Now worth other two million dollars. Thats if I sold.Best book. Michael Yardney”s “How to Grow a Multi Million Dollar Property Portfolio In Your Spare Time”
It confirms what I knew about correct property investing.
Because I have an argumentive fellow at work who believes the opposite to me, I bought him a copy as well. A very good read.bruham.
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